Tuesday, May 13, 2025 / by Vanessa Saunders
The FHA Loophole Hiding in Plain Sight: Assumable Loans Could Save You Thousands
If you’ve been staring down today’s mortgage rates like they just keyed your car, you’re not alone. With rates hovering around 7%, a lot of would-be homebuyers are understandably stuck in neutral. But there’s a little-known way to legally sidestep those high rates—and it’s hiding in plain sight.
Let’s talk about assumable loans.
An assumable mortgage lets a buyer take over the seller’s existing loan—interest rate and all. So if the seller locked in a 2.75% FHA loan back in 2021, and you're buying that home now, you could potentially step into that low-rate loan instead of taking out a brand new one at today’s market rates.
Sound too good to be true? Let’s run the math.
Loan Amount: $350,000 2021 FHA Rate (2.75%): ~$1,430/month 2024 Conventional Rate (6.75%): ~$2,270/month
That’s over $800 a month in savings. Every single month. For the life of the loan. Do the math over 30 years and you’re looking at3 ...
Let’s talk about assumable loans.
An assumable mortgage lets a buyer take over the seller’s existing loan—interest rate and all. So if the seller locked in a 2.75% FHA loan back in 2021, and you're buying that home now, you could potentially step into that low-rate loan instead of taking out a brand new one at today’s market rates.
Sound too good to be true? Let’s run the math.
Loan Amount: $350,000 2021 FHA Rate (2.75%): ~$1,430/month 2024 Conventional Rate (6.75%): ~$2,270/month
That’s over $800 a month in savings. Every single month. For the life of the loan. Do the math over 30 years and you’re looking at3 ...
